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The following chart shows the ratio of the FTSE 250 Index divided by the FTSE 100 Index since 1985. For example, yesterday’s close for the FTSE 250 Index was 18,342.1 and for the FTSE 100 Index it was 7074.3; dividing the former by the latter gives a ratio value of 2.59 (the last value plotted on the chart).

As can be seen, the ratio fluctuated in a sideways range from 1985 to 1999. And then the great out-performance of the FTSE 250 over the FTSE 100 began (on 18 Jan 1999 to be precise).

Over the following 16 years to today, while the FTSE 100 Index increased 16%, the FTSE 250 gained 274%.

The following chart zooms in to show the FTSE 250/100 ratio for the more recent period since 21012-2016.

After market close on 31 August 2016 FTSE Russell confirmed the following changes to the FTSE 100 and FTSE 250 indices. The changes will be implemented at the close Friday, 16 September 2016 and take effect from the start of trading on Monday, 19 September 2016.

After market close on 1 June 2016 FTSE Russell confirmed the following changes to the FTSE 100 and FTSE 250 indices. The changes will be implemented at the close Friday, 17 June 2016 and take effect from the start of trading on Monday, 20 June 2016.

After market close on 2 March 2016 FTSE Russell confirmed the following changes to the FTSE 100 and FTSE 250 indices. The changes will be implemented at the close Friday, 18 March 2016 and take effect from the start of trading on Monday, 21 March 2016.

Every quarter the FTSE set of indices (incl. FTSE 100 and FTSE 250 indices) are reviewed and the component stocks changed if required.

Elsewhere we have looked at the impact on the share prices of companies entering or leaving the FTSE 100 Index, here we look at the FTSE 250 Index.

Companies leaving the FTSE 250 Index

The charts below show the share price behaviour of nine companies that left the FTSE 250 Index (relegated to the FTSE Small Cap Index, not promoted to the FTSE 100 Index). The time period for each chart is 30 trading days, starting from 15 days before the index review announcement. The vertical line in each chart indicates the announcement day of the company leaving the index (this is the date under the company name).

It can be seen that, in most cases, the share price falls (quite sharply in some cases) in the few days immediately before the index review announcement, then rises in the few days following the announcement, and then falls again five or six days after the announcement.

Companies joining the FTSE 250 Index

The charts below show the share price behaviour of nine companies that joined the FTSE 250 Index (promoted from the FTSE Small Cap Index, not relegated from the FTSE 100 Index). As above, the time period for each chart is 30 trading days, starting from 15 days before the index review announcement. The vertical line in each chart indicates the announcement day of the company joining the index (this is the date under the company name).

It can be seen that, in most cases, the share price rises in the six to ten days before the announcement; following which the price either trades flat or falls back.